Dwight Capital originated and financed just under $ 27.4 million in US Department of Housing and Urban Development (HUD) – debt backed to refinance the multifamily component of Drayton Mills Lofts and Market, a recently renovated mixed-use rental complex in Spartanburg, SC, discovered the Commercial Observer.
The financing of section 223 (a) (7) of the HUD, a program that allows the refinancing of Federal Housing Administration and loans insured by HUD, was provided to the developer TMS development and management, which is led by the CEO Tara Sherbert, Show the public records of Spartanburg County; TMS is a subsidiary of The Sherbert Group companies. Financing ended at the end of September.
Tara Sherbert said that her company previously had a Section 221 (d) (4) HUD loan, which is set aside for construction or considerable rehabilitation work, which closed in 2014, and “with interest rates decreasing considerably since then, certainly refinancing made a lot of sense. We really couldn’t find a lower interest rate taking it from the HUD product to institutional debt. ”
Executive Director of Dwight Capital Brandon Baksh, together with Brian Yee, gave rise to this funding.
The Drayton Mills estate has existed for over a century and was previously a collection of textile factories. TMS revamped the $ 50 million mixed-use rental and commercial development site it is today, with 289 homes and nearly 60,000 square feet of commercial space, which were completed in 2018. Sherbert said he originally purchased the site from Greenville, SC- Headquartered Pacolet Milliken Enterprises.
The asset is located in 1800 Drayton Road in Spartanburg. The leased development includes a 60-foot Olympic-size saltwater pool, a two-story fitness center, a community room and walking trails, as per information on the property’s website and details of Dwight. Its historic use as textile mills has allowed the preservation of its large mill windows, 17-foot-high natural wood ceilings and original 1902 wood flooring, according to information on the property’s website.
In addition to the multifamily part of the development, the site boasts a number of other commercial stores, including a craft brewery, a pizzeria, a chiropractic office, a café, a buffet and a fitness tenant, among a number of others. The community won awards for being one of the largest and most comprehensive works of historical preservation in the state.
“When we developed Drayton, we knew that we needed to build a community, not just apartments,” said Sherbert. “We really had to build a community that works and supports each other. We needed to get the right mix of tenants.
Since COVID-19, Sherbert said his company, as a practical owner, has been working to maintain that sense of community since COVID-19 took over the country in March.
“We have had no problems with retail collections and no one has vacated yet, which has been unprecedented since COVID-19,” Sherbert told CO. “We are very involved. We work with all tenants to obtain [PPP] loans directly to them or educate them if they wanted to go through banks. Many retail tenants [in South Carolina] had to close under mandate because of COVID, but we partnered with our tenants. We wanted to be able to get out of this stronger than when we did.
“We work with all companies to think outside the box and give them more support, [like] providing more places to sit outdoors and, therefore, the property is coming out of it very strongly ”, he added. “In essence, we created a micro economy here … our own perfect storm of success. We cannot, we do not want and we do not approach Drayton as a passive landlord. “
The site has a mix of one, two and three bedroom units, as per its website. Monthly apartment rents range from about $ 1,100 for one-bedroom homes to about $ 1,900 for three-bedroom homes.